Sunday, April 3, 2011

Lets Simplify Taxes

I do not know anyone who enjoys paying taxes. It is a necessary evil but the system we employ is anything but democratic. Here is what I propose we do with our tax system:

  1. Why doesn't everyone pay the same tax rate? It is neither fair or makes sense that our tax rate is based on the amount of income we earn. Everyone should pay the same percentage of their income to the federal government in the form of taxes and that money should come off the top of our paycheck to rid ourselves of corporate loopholes and with holdings. Our W-2 forms should simply show us how much money we earned and how much we paid in taxes; nothing more.

  2. State taxes are a joke too. State taxes should be raised from a flat state sales tax rate. I will let the law makers determine that rate. If we do not like it, we can vote them out and elect new ones. There can be additional taxes in the form of car registration fees or sin taxes, otherwise, the taxes from our purchases should cover our basic needs.

  3. We, the people, should determine where our tax money goes. What better way to show the will of the people than to let them decide how they want their tax money spent? Instead of filling out tax forms to pay taxes, each year we could fill out forms checking off where we want our tax money spent. If I want all my money to go toward fighting wars or combating terrorism, then I should have that right. At the same time, if I'd rather have better schools, roads, and health care, I should be able to choose those areas instead. Wal Mart does not tell me what I can buy with my money, why should the government? If I go into a store and they do not offer what I want, I am under no obligation to make a purchase. Why should I be obliged to buy what I do not want with my taxed money?

  4. You snooze, you lose. If I do not return my tax spending request form by April 15th, then my money would go into a general government fund. The decision where and how to spend that money would then be handed over to our law makers. As it is, they seem unable to make timely or wise decisions so I do not think too many Americans will hand them this opportunity. Since our money has already been taken out and there are no with holdings, we become tax spenders instead of tax payers which does not sound so bad. Plus, lets not forget, the money that has been taken out in advance is earning the government interest.

  5. Do we really need them? Not taxes; politicians? Look, they can't balance a budget so we end up either with fewer services or higher taxes. Either way, we take it in the shorts under the current system. Under my plan, the people receive what they want at an equally applied tax rate. It's time we let the people decide what is done with their hard earned money rather than letting disconnected politicians continue making poor and fiscally unsound choices for us.

1 comment:

Daniel Jorgensen said...

A flat rate tax plan would be the best. No one should complain about that. Although I know people who don't understand the concept would complain. Simply put, paying a 10% flat tax would mean a person making 1 million would pay $100,000 and a person making $90,000 per year would pay $9,000. To go one step further, someone making $25,000 per year would pay only $2,500. Sounds like a fair plan to me.